KUALA LUMPUR (Oct 21): Based on corporate announcements and newsflow today, companies in focus tomorrow could include Ekovest Bhd, Axis Real Estate Investment Trust, Kumpulan Powernet Bhd, Gadang Holdings Bhd, Hua Yang Bhd, Kerjaya Prospek Group Bhd and Mah Sing Group Bhd.
Ekovest Bhd has secured more time to consider a proposal to acquire a 40% stake in IWH-CREC Sdn Bhd.
The group said it has mutually agreed with Iskandar Waterfront Holdings Sdn Bhd (IWH) for an extension of 30 market days starting Oct 22 till Dec 3, 2020, for the company to “deliberate and consider as well as to enable the parties to finalise the relevant agreements”.
IWH-CREC is a 60:40 joint venture (JV) between IWH and China Railway Engineering Corp (M) Sdn Bhd (CREC).
The JV owns a 60% stake in the Bandar Malaysia project, while the balance 40% is held by the Ministry of Finance.
Axis Real Estate Investment Trust’s net property income for the third quarter ended Sept 30, 2020 rose 4.98% to RM50.26 million from RM47.87 million a year ago on higher overall trust income.
Total trust income came in 6.13% higher at RM57.17 million compared with RM53.86 million previously.
It declared a distribution per unit (DPU) of 2.25 sen — of which 1.84 sen is taxable and 0.41 sen is non-taxable — to be paid on Nov 30.
This brings the total DPU in the first nine months of the year to 6.5 sen, versus 7.06 sen in the corresponding period last year.
For the cumulative nine-month period, the NPI rose 2% to RM147.41 million from RM144.52 million a year earlier.
Total trust income for the nine months was up 3.46% to RM167.43 million from RM161.83 million previously.
Kumpulan Powernet Bhd is seeking to venture into the logistics business by acquiring a 51% stake in chemical and gas transportation firm Chemtrax Sdn Bhd for RM10 million.
Chemtrax, headquartered in Pasir Gudang, Johor, is principally involved in the provision of chemical and gas transportation and forwarding services. The firm has logistics facilities with depots and yards in Pasir Gudang and Simpang Renggam, Johor and Kuantan, Pahang.
Kumpulan Powernet said it has signed an agreement to buy the stake from Sabaka Group Sdn Bhd, which currently wholly owns Chemtrax.
The group said it could immediately leverage on the long-term established experience of Chemtrax and its existing platforms across chemical and gas transportation businesses for the multinational companies.
Gadang Holdings Bhd saw its net profit for the first quarter ended August 31, 2020 (1QFY21) rise 35.64% to RM548,000 from RM404,000 in the immediate preceding quarter (4QFY20).
This was despite a 0.18% dip in revenue to RM115.39 million from RM115.6 million a year ago, according to Bursa filings.
The group noted its profit before tax fell 67.86% to RM2.06 million from RM6.41 million in 4QFY20, mainly due to an RM1.4 million fair value loss on quoted investment and an unfavourable foreign exchange translation of RM1.6 million recorded in the current quarter.
On a yearly basis, net profit slumped 96.31% from RM14.85 million in 1QFY20 due to lower contribution from the construction division and unfavourable foreign exchange translation.
The group said its revenue for the first quarter also fell 21.82% year on year to RM115.39 million, from RM147.6 million a year ago.
Property developer Hua Yang Bhd slipped into the red in the second quarter ended Sept 30, 2020 on lower sales and because its Meritus Residence development had been completed at the end of the previous financial year.
The group told the stock exchange that it posted a net loss of RM5.66 million for the quarter, compared with a net profit of RM944,000 a year ago.
Revenue for the quarter also slumped 52.28% year-on-year (y-o-y) to RM32.45 million from RM68 million.
For the cumulative six-month period, the group posted a net loss of RM10.52 million compared to a net profit of RM4.69 million in the previous corresponding period.
Six-month revenue also plunged 67.33% y-o-y to RM49.06 million from RM150.17 million.
Kerjaya Prospek Group Bhd has bagged an RM64 million contract to build a sewerage plant for the Seri Tanjung Pinang (Phase 2A) development (STP2) in Penang.
This is the group’s fifth contract in STP2, which is developed by Tanjung Pinang Development Sdn Bhd, an indirect subsidiary of Eastern & Oriental Bhd.
While works related to sewerage treatment plants are unorthodox for Kerjaya, the group said it expects to complete the job favourably, adding that it would be a beneficial experience.
Kerjaya said it will work closely with experienced sub-contractors to implement the latest treatment plant system which has a softer ecological footprint on the environment.
Mah Sing Group Bhd is set to commence glove production in April 2021.
Mah Sing said it has commenced additional piling works to accommodate 12 units of new, high-speed glove dipping machines in its glove manufacturing factory in Kapar, Klang, to meet its targeted production date.
It said the piling works are expected to be completed by November, to be immediately followed by installation of the machinery.
These 12 production lines are Phase 1 of Mah Sing’s diversification into gloves and have a maximum production capacity of up to 3.68 billion pieces of gloves per annum.